At the same time, AUM of industrial S-REITs grew at a CAGR of 10.7% ARA LOGOS Logistics Trust’s AUM has grown by less than S$140m in the past five years at a CAGR of 2.3%.Potential to Grow AUM With New Partnership We do not foresee the need for further provisions in 2Q20. Retention of 20% of income in 1Q20 should be more than sufficient to provide for the one-month rental waiver even if all SME tenants are eligible.Only about one-third of ARA LOGOS Logistics Trust’s tenants in Singapore qualify as SMEs.Moreover, only SME tenants who have seen revenues decline by more than 35% are eligible for this rental waiver.Despite being detrimental for landlords, it provides certainty on impact to earnings.Amendment to Temporary Measures Act requires landlords to provide one month of rental waiver to SME tenants whose businesses have been significantly affected by the COVID-19 pandemic.Landlords and tenants can look forward to reopening of businesses as Singapore gradually lifts its Circuit Breaker measures in phases.
#Price is right logos upgrade#
Upgrade ARA LOGOS Logistics Trust (SGX:K2LU) to BUY with a Target Price of S$0.70.ĭownside Risks Abating With Reopening of Economies.Potential acquisitions can be made accretive at the right share price.With more clarity on earnings outlook, we shift our attention to acquisitions from ARA LOGOS Logistics Trust's new Sponsor.Abating downside risks with the gradual reopening of businesses sufficient provisions made in 1Q20.